Price trend

The coming year of 2020 is not only full of challenges, but also full of opportunities in a year when the internal and external environment of the industry is more complicated. Just like this year’s rubber and plastic industry, all kinds of resistance did not stop the rapid development of the domestic rubber and plastic industry. According to the data of the business community’s block data list, most of the plastic products developed well this year. As of December 25, the average price of PA66 medium viscosity injection molding sample enterprises was about 28900 yuan / ton, up 25.18% from the price level at the beginning of the year. This year, following the macroeconomic situation of last year and the serious imbalance between supply and demand of PA66, the market of this year will not go smoothly. Let’s review the market situation of PA66 in 2020 and grasp the current price pulse.

As time goes by, it has been two years since PA66′s glory in 2018. From the results, the demand is weak due to the heavy pressure on downstream costs, and the imbalance between supply and demand obviously has an impact on 2020. In the beginning of this year, the public health events affected China. PA66 industry chain generally returns to work slowly, during which the market has price but no market. The stagnant trading is unfavorable to the future market, and the limited operating space restricts the spot price of PA66. By April this year, the PA66 industry chain had resumed production in an all-round way.

In the second quarter, the load of PA66 manufacturers returned to normal. After the previous market plunge, the current price was low and the supply and demand were not prosperous. On the contrary, the operating rate does not fall but rises, and the inventory pressure gradually increases. Similarly, PA66 spot supply has consistently been adequate. The background of imbalance between supply and demand met the off-season consumption of engineering plastics. On June 8, the average price of engineering plastics fell to an annual low of 18600 yuan / ton, 19.44% lower than the price level at the beginning of the year. At that time, it was difficult to see the turning point in the second half of the year.

Due to the lack of confidence in the future market, as early as June, the domestic PA66 chip factory began to reduce the negative production. The operating rate of Shenma industry was about 80%. Half of the units of Huafeng Group were shut down, half of the units of Dandong Youfu technology were shut down, and even the production of Liaoyang Xingjia was directly shut down. So far in July, PA66 stopped falling and ran in shock. The situation of oversupply of spot goods has partially changed, but the stock in the market has been digested. PA66 industry market adjustment gear began to turn, and the time is coming to the traditional peak season “golden nine silver ten”.

In September, the operating rate of domestic PA66 did not change much, and the shortage of goods in the market began to appear. Orders follow-up speed gradually accelerated, stock boom before the festival pushed up demand, BASF, a large foreign manufacturer, announced several times to increase the price of PA66 industry chain products in the Asia Pacific region. During this period, DuPont, Randic and other large factories also followed up, and the news of direct price increase was announced. PA66 market began to pick up. During the period, the tepid adipic acid market was also driven by PA66 and pure benzene market, with adipic acid in East China rising 5.14% in October. Due to the shortage of supply, the inventory position of polymerization plant is on the low side. Due to the task of supplying core old customers, the on-site supply is more tight than it seems.

In the fourth quarter, the domestic epidemic prevention work was stable, and the market ushered in a restorative growth. The purchase and sales volume of terminal products increased significantly, among which the home appliance and automobile industry made great efforts. PA66 has been trading at the same level as the traditional peak market. The increase was concentrated in the first and middle of November, with a total increase of 30.24%. At the end of the year, the price of PA66 tends to be stable, the replenishment operation of downstream factories tends to be rigid demand, and the price is high and firm.

Business analysts believe that: in 2020, the domestic market of PA66 looks like looking for the moon from the bottom of a haystack, and the price will be suppressed first and then increased, achieving a quarter of the increase in the whole year. The contradiction of oversupply that plagued PA66 in the past two years was eased in the middle of the year. At present, the production scheduling of PA66 enterprises is smooth, and the price is running steadily. PA66 industry chain has developed steadily this year, and the future is promising.